7-Jun-2011 11:12 AM

IATA cautions EU ETS may provoke retaliation

IATA Director General and CEO Giovanni Bisignani stated at the IATA AGM that the EU must take note of a "growing chorus of countries strongly opposing” the inclusion of aviation in the EU Emissions Trading Scheme (EU ETS), which he described as “an illegal extraterritorial scheme" (BBC, 06-Jun-2011). He cautioned that the possibility of a tit-for-tat “trade war” is the last thing that airlines want to see, as it would be disastrous for Europe. Authorities and airlines from the US, China and Russia have expressed their opposition to their unilateral inclusion in the scheme.